Companion Damage Question --- arena fights

Some people like to play PvP arena fights. When your companions are defeated in the arena will they suffer a penalty? Are you going to be able to select companions that are injured for arena battles without them being treated as if they are injured?

Some people like to play PvP arena fights. When your companions are defeated in the arena will they suffer a penalty? Are you going to be able to select companions that are injured for arena battles without them being treated as if they are injured?

I believe Rat Beard said that they won't be injured when defeated in PVP.(or was it OEJ?)